Legal updates and opinions
News / News
Draft Amendments to the Pension Funds Act 24 of 1956: The Highlights
by Natalie Scott, Director and Kyra South, Associate
On Friday, 26 February 2021, the National Treasury released a Media Statement regarding the publication of the draft amendments (“Draft Amendments“) to Regulation 28 of the Pension Funds Act Regulations, 1962 (as amended) (“Regulations“), published under the Pension Funds Act 24 of 1956 (“Act“).
Regulation 28 of the Regulations requires asset managers to, inter alia, make (i) sustainable, (ii) responsible and (iii) transparent investments when dealing with Funds (defined in section 1 of the Act) (“Objectives“). In order to achieve the Objectives and to ensure that asset portfolios are appropriately diversified, asset managers are required to spread assets across a number of different asset classes (which classes are listed in table 1 under Regulation 28 of the Regulations).
The Draft Amendments seek to, inter alia, encourage asset managers to increase investments in infrastructure projects (and to bridge the existing infrastructure gap) by:
- including specific definitions for ‘infrastructure’ and ‘hedge fund’;
- segregating ‘hedge funds’, ‘private equity’ and ‘any other assets not listed in this schedule’ (“New Asset Classes“); and
- allocating specific limits for each of the New Asset Classes.
Under the Draft Amendments, a separate ‘infrastructure’ asset class has not been created. Instead, references to ‘infrastructure’ have been included in, inter alia, new Regulation 28(2)(c)(x) as a principle with which Funds are required to comply when making investment decisions.
Comments on the Draft Amendments are required to be submitted to Mr Basil Maseko at the National Treasury at retirement.reform@treasury.gov.za by no later than 29 March 2021.
Latest News
To credit is to pay
Although common in practice, and especially between group companies, not much judicial thought has previously been given to the tax [...]
Domestic violence: a sad South African reality
The plight of violence against women in our country has been given much media attention in recent times, especially during [...]
Top ten reasons to register your trade marks
The significance of registering trade marks should never be underestimated by any business with countless reasons as to why you [...]
Broad-Based Black Economic Empowerment Commission announces investigations of trusts used in B-BBEE ownership structures
INTRODUCTION On 7 August 2017, the B-BBEE Commission announced that it had initiated 17 investigations for possible contraventions of [...]
Understatement penalties: what is a bona fide inadvertent error?
INTRODUCTION The Tax Administration Act No 28 of 2011 (TAA) introduced the understatement penalty regime with effect from 1 [...]
The LAC rules on the TES deeming provision
THE CLIENT BECOMES THE SOLE EMPLOYER WHEN THE DEEMING PROVISION KICKS IN INTRODUCTION In NUMSA v Assign Services [...]
